Northampton County selling Bechtel Building to Bethlehem attorney

Bethlehem attorney Justin McCarthy to buy site for more than $1.5 million, use it for offices.

The Bechtel Building, located at 520 E. Broad St. is pictured in Bethlehem… (Harry Fisher, THE MORNING…)

August 29, 2013|By Samantha Marcus, Of The Morning Call

Northampton County Executive John Stoffa announced Thursday that the Martin J. Bechtel Building in Bethlehem will be sold to Bethlehem attorney Justin K. McCarthy for use as professional offices.

The Bechtel Building, 520 E. Broad St., is one of two human services buildings the county is selling as part of plans to move into a consolidated human services facility being built in Bethlehem Township.

McCarthy will buy the 29,000-square-foot building that sits on 2.12 acres for $1.575 million. Built in 1966, it was purchased by the county in 1993 for $763,000.

The Bechtel Building houses several human services divisions, including drug and alcohol, early intervention, Health Choices and mental health and developmental programs. The county's weights and measures division and a juvenile probation satellite office are also there.

McCarthy's law office, the TJ McHale & Co. insurance agency and Michael W. La Porta Insurance are relocating to the Broad Street site from 528 N. New St., Stoffa said. McCarthy intends to rent out additional space to other professional tenants.

"This is a win-win situation," Stoffa said. "It contributes to the revitalization of Bethlehem, and Northampton County will reinvest the revenue from this sale into the new human services facility."

The ownership change also marks a change in the tax status of the property, which was tax-exempt as a government building.

Council President John Cusick said he looks forward to putting the building back on the tax rolls as soon as possible.

County Council must approve the sales agreement. At closing, McCarthy will move into 2,200 square feet of space on the first floor and lease the rest of the building to the county until it can move into its new facility next spring.

Rather than pay rent, the county will continue to pay for utilities and minor repairs and maintenance.

The county was asking $1.95 million for Bechtel when it put the building up for sale in May. Director of Administration Tom Harp said the building was appraised separately at $1.2 million and $2 million, and the sale price fell roughly in the middle.

"It's a fair price," Cusick said Thursday.

Money from the sales of the Bechtel and Wolf buildings, a combined $3.475 million, is expected to offset some of the costs of the new human services building.

The county has agreed to sell the historic Gov. Wolf Building in Easton to developer Mark Mulligan, along with partners Bill Vogt and David Dallas, for $1.9 million. The developers have said they will spend an additional $3.5 million renovating the former school into high-end apartments with some retail in the former gymnasium.

The proposed sales contract includes a provision allowing the developers to opt out if tax incentives, specifically a Keystone Opportunity Zone that spares the property from most state and local taxes, fall through.

Previous appraisals pegged that building's value at $1.85 million and $2.2 million.

Human services divisions split between Bethlehem and Easton will unite in a 66,375-square-foot facility that's under construction at 2801 Emrick Blvd. in Bethlehem Township. The county will rent the building from Polaris Properties Inc. for $959,000 a year, with 2.5 percent annual increases and an option to buy after five years.

Human services employees have criticized the condition of the Wolf Building, which Stoffa called "a horrible place to work." It's estimated the properties would need at least $4.3 million in repairs.